Działania antykryzysowe w obszarze kultury w trakcie pandemii SARS-CoV-2. Stan obecny i wnioski de lege ferenda w zakresie zwiększenia partycypacji obywatelskiej oraz instytucjonalnej

The aim of the article is to analyse alternative legal solutions in the field of supporting cultural institutions during the epidemic. A review of the activities of the Ministry of Culture and National Heritage in the area of supporting cultural institutions in Poland during the epidemic as of May 2020 was carried out. Based on the analysis, de lege ferenda conclusions regarding new possibilities of financing the activities of such institutions were identified. The authors present legal solutions concerning the transfer of 1% PIT, deduction of donations, issue of revenue bonds and financing in the form of treasury securities. The conclusions of the research conducted by the authors are embedded in the area of economic analysis of law (Law&Economics).

Bond Index Approach to the Evaluation of Transportation P3 Market in the U.S.

Private investment through revenue bonds has become an important source of financing for public agencies seeking to implement public–private partnership (P3) projects. It has been a long-standing assumption that private financing exceeds the limited investment opportunity attributed to P3 projects in the pipeline. This assumption, however, remains unexamined. Basic economics theory states that prices go up if demand exceeds supply. Therefore, this study presents the construction and performance of the P3 surface transportation bond index to evaluate private capital for P3 projects. The index will help encourage private investment in P3 projects in addition to measuring the return of such investment on a market basis. The index can also disclose the risks of P3 revenue bonds and potentially offer an investment instrument in the secondary market.

How attractive are municipal bonds for the passive competitiveness: the case of immunization of municipal bonds

Purpose This paper study regional attractiveness through passive portfolio investment based on duration, immunization and convexity (in case of higher interest rate volatility) of municipal bonds by using data from Standard and Poor’s. The massive variety of financial incentives to promote regional investment attractiveness is dependent on governmental strategy. Municipal bonds are the one of the most efficient ways of direct investments in the region, however, it is still a question of a good balance between a certain rate of return and an adequate risk. The purpose of this paper is to analyze the investment opportunities in municipal revenue bonds. Design/methodology/approach This study developed a model of investing using municipal bonds with the case of their immunization and analyze attractiveness of such investment. The theoretical model assumes a situation where the local government finances its capital projects through municipal revenue bonds. Such situations influence strongly on regional or local competitiveness provided by local government policy. Findings An analysis of the municipal bond market indicates that both municipal general and revenue bonds had stable and good level of yields to maturity in the past ten years. Their standard deviations were very low and in the past two years almost approached the level of standard deviations of treasury bonds. With the duration of 4–6 years on 5-year investment in municipal revenue bonds and their immunization, it is possible to provide good returns for investor. Research limitations/implications The limitation of this study concerns theoretical situation where local government will use non-market-based policy to reduce the interest rates and that will influence on rise of municipal bond liquidity premium (price distortion). This situation will make municipality bonds less attractive for investing, especially because of lower liquidity on secondary market. Also, this model is applicable in regions that have developed financial markets. Practical implications This research suggests governments a sustainable framework to use municipal bonds as a strategy for capital targeting in regions. Social implications This research is related to professional investors’ strategy with projects that have the highest investment potential; this is good way for an adequate allocation of resources (regional competitiveness). Originality/value This paper analyzes very rare subject involving local government strategy of finance and portfolio investment in municipal bonds. There is a huge gap in the literature on this issue. Also, this study provides the model that can be used as a case for higher local competitiveness.

Does financial advisor quality improve liquidity and issuer benefits in segmented markets? Evidence from the municipal bond market

Purpose Using a unique sample of about 563,000 competitively bid municipal revenue bonds with financial advisors issued during the period 1998–2012, the purpose of this paper is to examine the role and influence of financial advisor quality in the municipal bond market. Design/methodology/approach The authors use a sample of about 563,000 competitively bid municipal revenue bonds with financial advisors issued during the period 1998–2012. The authors estimate a selection model where the authors identify the factors leading to the selection of a high-quality financial advisor. The authors then, using the inverse mills ratio from the first regression, estimate the association of high-quality advisor (and other factors) with the cost of borrowing. Findings The results suggest that high-quality financial advisors provide a credible signal to market participants about issue and issuer quality. This signal translates to a greater number of bids for issues that use high-quality financial advisors, resulting in improved liquidity and lower borrowing costs for these issues. The results also show that the beneficial effects obtained by using higher quality financial advisors are prevalent across all categories of issues such as for refunding and non-refunding issues, and for both insured and non-insured issues. The benefits are also generally observed for issues of most size categories. The results also suggest that the passage of the Dodd–Frank Act requiring mandatory registration of financial advisors and enhanced scrutiny has only increased the benefits to issuers from using higher quality financial advisors. Originality/value This paper differs from previous research in several important ways. First, the study is, to the authors’ knowledge, the first study that explores the relationship between financial advisor quality and liquidity in the municipal sector. The authors show using higher quality financial advisors enhances liquidity for the issues by attracting a significantly large number of bids. Second, the sample is exclusively comprised of competitively bid revenue issues all of which rely on financial advisors. This enables us to examine more unambiguously the influence of financial advisor quality, without the confounding effects of issues without financial advisors. Third, time coverage (1998–2012) and size of the sample (roughly 563,000 bond issues) enables us to conduct varied sub-sample analyses with greater power since the resulting sub-sample partitions themselves are of very large size. This provides better and additional insights into the role of financial advisor quality. The more current data when compared to prior research enables us to examine the impact of financial advisor quality inter-temporally with special attention devoted to the period after passage of the Dodd–Frank Act.

Obligacje przychodowe jako narzędzie zwiększające zdolności inwestycyjne gmin wiejskich w Polsce

The paper presents issues related to the notion of the municipality as a basic unit of local self-government, budgetary policy and financing of municipal investments with the use of revenue bonds. The main purpose of the work was to show non-financial ways of financing municipal investments with special regard to municipal bonds and revenue. Income bonds have many advantages as source for the implementation of municipal investment compared to a loan. They are issued to finance investment projects or projects from which revenue have to be the source of repayment of those issues. From the point of view of investment risk assessment, revenue bonds, as well as municipal bonds in general, are classified as the safest securities, which results from the publicly-regulated status of a local government unit. The essential attribute of a municipal issuer is the fact that a self-government unit cannot go bankrupt. The conducted survey among 132 rural communes in Poland showed that the main source of extra-budget financing for communes are EU subsidies and loans. Communes do not use revenue bonds (except for two) because they do not know about such a financial instrument, and they also worry about the excessive debt of the municipality. It seems that an important reason for this is the caution of the communes and the reluctance to use instruments that are not well known to them.